Issue - meetings

Decision:

That the Corporate Debt Recovery Policy, as set out in Appendix 1 to the report submitted by the Executive, be adopted.

Reason(s):

Adopting a short, clear policy setting out both Council and Debtor responsibilities could deliver the following benefits:

·       A consistent approach across the Council, and a way forward for any customers with multiple debts

·       Clarity for customers

·       A tool to help in the debt collection process

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

In the absence of the Lead Councillor for Resources the Leader introduced the report.

The Executive heard that the report was a result of some research by officers in the Council to ensure that residents were being treated fairly and appropriately if they had multiple debts. The Homeless Reduction Act 2017 was a driver for considering the idea of a policy.  The Act placed a duty on the council to ensure that advisory services are designed to meet the needs of groups that are at increased risk of becoming homeless. In addition, there had been concerns at officer level that residents with Council Tax arrears could also have difficulties with Council rents and that there should be a joined up approach. The research found no evidence of a problem but concluded that a policy would provide certain benefits such as a consistent approach across the Council for residents with multiple debts, clarity of that approach and a tool to help in the debt collection process.

The draft policy had been considered by the Service Delivery Executive Advisory Board (EAB) and all recommendations from that process were included in the draft before the Executive. A simple, accessible version of the policy would be posted to the Council’s website for the assistance of residents. The Vice Chairman of the EAB, Councillor Ramsey Nagaty was in attendance and supported the recommendations to the Executive as set out in the report.

It was noted that Waverley Borough Council did not have a Debt Recovery Policy and it was suggested that this be might considered as a topic during collaboration discussions.

The Executive,

RESOLVED:  That the Corporate Debt Recovery Policy, as set out in Appendix 1 to the report submitted by the Executive, be adopted.

Reason:

Adopting a short, clear policy setting out both Council and Debtor responsibilities could deliver the following benefits:

·         A consistent approach across the Council, and a way forward for any customers with multiple debts

·         Clarity for customers

·         A tool to help in the debt collection process

A draft Corporate Debt Recovery Policy and covering report were before the EAB for consideration.  The Lead Councillor for Resources introduced the report which invited the EAB to provide feedback in respect of the draft Policy and the proposed recommendation to the Executive that the Council should adopt such a policy.

The Policy was clear and concise seeking to deliver the following benefits:

·             Ensure a consistent approach across the Council and establish a way forward for customers with multiple debts.

·             Offer clarity for customers setting out what action and support they can expect from the Council together with the Council’s expectations of debtors in line with the Future Guildford model of self service.

·             Provide a useful reference document for officers when collecting debts.

Officers had been asked to develop a Corporate Debt Recovery Policy prior to the Covid-19 pandemic owing to the perception that there was a conflict between the collection of Council Tax and Council rents, specifically where a debtor was in arrears for both.  Although the related investigation found no evidence of such a conflict, it involved officers reviewing some publicly available debt recovery policies of other councils and resulted in the preparation of this Council’s draft Policy.

The following feedback points arose from related questions, comments and discussion:

1.           The draft Policy was welcomed as a succinct, beneficial and admirable policy document.

2.           An easy read version of the Policy should be produced to increase accessibility and use and a less formal introduction section within the Policy be written for publication purposes.

3.           With the involvement of Councillors Jo Randall and Ramsey Nagaty as required, the wording of the draft Policy and covering report should be reviewed in relation to the references to the responsibilities of individuals with multiple debts and adding context to the statistics in paragraph 4.4 of the report.

4.           Work with the Communications and Website Teams should be pursued to reinforce the message to residents that the Council sought to support debtors in a holistic manner with a view to assisting them to become debt free.

5.           The Council’s website could direct people with debts to the numerous supporting organisations that were able to offer related advice and assistance.

6.           Although there were no indications that ‘loan sharks’ were an issue in the Borough, related information and signposting to sources of support and advice could be added to the Council’s website to assist anyone encountering them.

7.           Council assistance involved working with debtors to identify the reason for their debts with reference to their income and expenditure and advising them in respect of the recognition of priority debts such as the need to sustain their tenancies.  This support led to high Council Tax and rent collection rates and low levels of evictions.

Further to the recommendation in the report, the EAB agreed that the above points formulated its feedback in respect of the draft Policy and that the recommendation to the Executive that the Council should adopt such a policy be supported.